CITY FOCUS: Eurostar bosses swapping seats

Eurostar is about to appoint Frenchman Nicolas Petrovic to head the
high-speed train service, just as Paris has agreed to cede some of its
stake to Britain.

A coincidence? When were such delicate matters of state, like national pride, ever left to mere fortune?

Petrovic's elevation from the guard's carriage (he was chief
operating officer) to the driver's seat means that current boss, Briton
Richard Brown, will be shunted upstairs to the chairman's role.

The current chairman Guillaume Pepy, another Frenchman (I think you are beginning to get the picture), will step down.

Sources believe the moves are a political fudge to ensure the
powers that be on both sides of the English Channel are happy with
their boardroom representation.

In return for handing over the controls to Petrovic, a former executive of French state-run rail
operator SNCF, Paris has agreed to reduce its stake in Eurostar, while
Britain will increase its foothold.

Under a new proposed ownership structure, SNCF - which
currently owns 62 per cent of Eurostar - will have about 55 per cent, Britain's
Department for Transport will own closer to 40 per cent, with Belgium's state
railway SNCB retaining its 5 per cent stake.

It is thought that while Paris and London have agreed the structure, they are just waiting for Brussels to give its approval.

A Frenchman is taking over Eurostar's top job

One source said the appointment of Petrovic is a sop to the French in return for relinquishing some of its stake to Britain.

The source also said Petrovic's elevation has caused a stir
among Eurostar's other directors, some of whom had hoped they were in
with a shot at the top job.

'Some of the directors are not happy about the appointment as they feel it is a concession to the French,' the source said.

A spokesman for Eurostar said: 'It is merely a rational
progression that reflects the fact that Nicolas has been chief
operating officer since 2003. He has been selected on merit. For no
other reason.'

Pressed on whether Petrovic was being given the top job to compensate the French for giving up some of its stake, the spokesman insisted 'in no way whatsoever' was this the case.

The overhaul of Eurostar's corporate structure is all part of
the company's move towards becoming the first ever European train
group, to be known as Eurostar SE.

This means that it will have the legal right to operate in any
European country, with all the relevant licences and safety approval.

The legal move will make it much easier for Eurostar to expand
services into any European country, giving it a head start on other
high-speed rail operators like Germany's Deutsche Bahn (DB) and Dutch
company NedRail.

This could prove significant from January 1, 2010 when the
European rail market is liberalised, allowing operators to set up
services in any country.

Brown last month told the Daily Mail that he was eyeing
opportunities to run Eurostar services to Amsterdam, Cologne and
Frankfurt.

The high-speed Brussels to Amsterdam line opens next year and the fast Brussels to Cologne line started running recently.